Tough week in the stock markets

The FTSE  started the week on a positive note but sadly this was not to continue. Concerns over inflation, tapering and raising rates still seem to be giving the market jitters. It’s probably worth putting into perspective that the rate rises we’re talking about in the UK are likely to be from 0.1% to 0.2% some time towards the end of next year; even later for the Eurozone and still negative.

While these numbers hardly seem reason for major concern, this chatter does seem to impact global markets in dramatic fashion? We think the truth is that everyone is a little on edge given equity valuations. However, these high valuations are not evident in the UK so it seems to be that we follow the US regardless of what is happening with our own economy. Another example of how those with the most money control the market.

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With this in mind, US stocks fell on Friday to their lowest level in almost a month while Treasuries were knocked, as investors grappled with signs of slowing global economic growth and the implications for monetary policy. The S&P 500 index fell by 0.9 per cent on Friday, its lowest point in four weeks, having lost about 2 per cent in September so far.

The technology-focused Nasdaq Composite also shed 0.9 per cent on the day, with both indices falling for the second consecutive week. In Europe, the Stoxx 600 equity gauge fell 0.9 per cent, finishing the week down 1 per cent.

The worst performer of the week, was the Hang Seng in Hong Kong, which was hit by a massive -4.9% loss as trouble over Chinese regulation of tech stocks still seems to be causing huge price fluctuations.

So how did the week end up?

Europe:

FTSE -1.21%
CAC -1.84%
Dax -0.99%

Global

S&P -0.57%
Nasdaq -0.47%
Hang Seng -4.9%
Shanghai -2.73%

So it’s been a bad week for stocks and global equity portfolios across the world. BUT, as you know, this doesn’t always mean it’s been a bad week for portfolios on The Portfolio Platform. We had quite a few trading fairly flat on the week, which is great when you compare it to the indices, but as you’ve all come to expect, we’ve also had a few solid performers.

On weeks like this, stepping away from the market, and waiting to time the move back up, can often be the best and most profitable strategy. With the markets taking the hit they did, any trader in profit this week has done well. Here are the results:

European Index: 0.3%
Equity Buy Sell: 1.2%
SP500 Trader: 1.8%

But taking the mantel this week is one of our most popular strategies Cambridge Futures with a profit of 3.2%.

‍‍The market has dropped 1.21%, but this team liquidated their ‘buy’ position on Thursday night, only for the market to fall nearly 100 ticks before they bought back in yesterday afternoon.

Sometimes our traders even surprise us with their remarkable timing and we’re sure you’ll agree, this was a welcome bit of insight which should have helped out with a number of portfolios this week.

The good news is, if we rally back, you get to make the money all over again. Well done to them, and we hope you all enjoy the rest of your weekend.


For more information please feel free to email us here, or book in a call with one of our directors to hear more.